the re root function in the VAB allows you to change the root part of the vessel to whichever part you want it to be (with a few restrictions, i think the part must not be physics less) so yes I utilize this function to change the root part to my command pod.

I've noticed this happens when the root part of the ship is in a different stage from the control point and the root part is jettisoned. AFIK it happens every time, thats why I build my ship and then re root to the whichever control point I deem most important.

Are you sure that Krakensbane is activated by speed. It was described to me as being activated by distance from your ship to the origin, which makes a lot more sense than velocity if you consider how floating point errors work.
As to what the devs described, I read that as krakensbane, i.e. rotating, as in your ship is rotating (orbiting) around the plane. To an inertial reference frame, which is, you're ship isn't technically moving but everything else is in relation to it.

I believe it has more to do with how Krakensbane is implemented. For newer players Krakensbane is the name of the solution to the floating point errors that were occurring in KSP (the Kraken). Essentially what happens is that the game goes from treating Kerbin (or which ever body you are landed on) as the origin to your ship as the origin, and i believe this change over occurs at orbits greater than 100km. As I'm sure you can imagine the math that goes into this sort of reference frame change is quite complicated and any small error in that math could lead to the loss of orbital altitude bug that was being reported.
Edit: Ignath, its awesome to meet a fellow Minnesotan!

Squad has mention in the past that they would like to ad localization, mainly language support to KSP and have previously actively worked towards this goal. I don't know when this feature would be completed but I do think it is necessary.

but then we would deprive everyone who learns this game after this is applied the learning moment where they launch their first rocket with an SRB and parachute in the same stage. I think everyone who has ever played KSP has done this at some point or another.